Dubai Property Boom Promoting Growth of Smart Homes

With the advent of Dubai property in the region and around the world, there is a growth of associated businesses as well. Over recent times, one sector that has seen tremendous profit from the expanding Dubai property market is the development of high-end electronic gadgets, top rate entertainment systems and smart homes in particular. The prices of homes have risen with the rise of Dubai property and consequently, the concept of a home has gone a sea change. At present, the emphasis in Dubai property market is on smart features of homes.

Over the years, people’s expectations with respect to buying Dubai property have transformed to a great extent. The general notion these days while purchasing Dubai property is this - when one is spending a substantial chunk of money, the latest comforts and gadgets have to be there. Some of the most popular smart home features in Dubai property are systems that allow one to control the ambience of the home at the touch of a button. Home cinema and entertainment systems are next best pick in Dubai property. The business has grown and expanded to such an extent that in addition to walk-in customers, companies now cater to Dubai property buyers in conjunction with Dubai property developers.

With the crème of society from across the globe thronging Dubai for property, the best possible smart home solutions are being offered by companies in Dubai. So much so that it is quite common for people to spend thousands of dollars on smart home features and facilities in Dubai property. The smart home industry caters to customers of Dubai property in two ways – one, new homes that have already been built; and two, homes that are being built. Also linked with the smart home industry are companies working towards developing systems that reduce energy consumption. Dubai property sector is offering homes that digitally tackle the energy issue through home automation systems. Thus smart home companies and developers of Dubai property work in close conjunction with each other.

Technology is backing Dubai property to such an extent that you wouldn’t have to move from room to room in your home for opening/ closing curtains, change lighting, modify room temperature, or access audio/ video systems from various rooms. All this can be done with the help of touch screen pads. Smart homes being offered by Dubai property market not only provide comfort and save time, but also keep a check on how much energy is consumed. By changing the levels of air-conditioning and lighting at different times of the day, one can effectively reduce energy consumption and thus be environment friendly. The Dubai property development trend is quite relevant and apt in the contemporary preoccupation of governments and people with global warming.

When it comes to demand, Dubai property developments with smart features are on the rise. And it is expected to rise not just in Dubai property sector, but also across GCC countries.

Dubai Property Prices – Hike This Summer?

Dubai property experiences a low time usually in summer months, typically between June and September. This is due to the fact that the weather is quite hot, making migrants arrive in Dubai during autumn and months that follow. 2008, however, seems to be a different story for Dubai property sector. Dubai property market is much hotter than the sun these days. This has largely become possible because of off-plan Dubai property buyers vying with each other to make investments in Dubai property.

Factors responsible for hike in Dubai property prices:
• High local inflation rates
• Low US interest rates
As a consequence, Dubai property market is being fueled with negative real interest rates. In the present scenario, an investor deferring Dubai property purchase till autumn is quite likely to face at least 10 percent more prices than those during summer months.

The Dubai property market has gained momentum in the year 2008 with the rate of rise in prices speeding up to a level not seen for the last four years and the early days of the Dubai property boom. With Dubai property prices having risen by 10 to 15 percent in April-May this year, they are least likely to slow down over summer months.

On the other hand, it is very much probable that Dubai property prices continue to increase even when there is a deceleration in transactions. In fact, Dubai property sellers are keeping their units on hold expecting a rise in prices. Consequently, there has been a shortage in Dubai property market which in turn has resulted in still higher prices.

It is a bit uncertain at the moment whether owners of Dubai property coming back from their summer holidays will suddenly start selling their properties. Nevertheless, there will be owners who want to cash-out their properties because they are returning home or starting a new venture. At the same time, there would obviously be those who have long-term commitment to Dubai property market for whom sitting on an asset that is rising in value is a perfectly reasonable thing to do.

There is still another argument going on amongst Dubai property analysts. As capital values go up, rental yields are going down. This is because rental hikes may not keep pace with the capital appreciation. At the same time, as per Dubai property market reports, there is 20 percent annual rental inflation. The yields have to be put in comparison with interest rates, which at 2 percent on deposit accounts are not a very good alternative, especially in the context of high inflation rates.

On any given day, buying Dubai property is a better alternative than renting. This saves rent, protects capital against inflation, and makes one take part in the much talked about (and maybe now clichéd!) Dubai property boom. The shortage of completed Dubai property units available for sale is indeed a crucial factor that will buoy up house prices this summer and autumn.

With the required economic forces acting in place, Dubai property boom is here to stay!